Bluewater Yachts

Klapmeier’s grandfather had less upscale clients in mind when he began building the “Boatel”, a pontoon-style houseboat. Eventually, buyers wanted more luxury, so the company responded first with a line of entry-level yachts then with 50, 65 and 70 foot luxury models.

A third-generation boat maker, Klapmeier never envisioned taking Bluewater’s helm from his father. He had sailed a different course in life, earned an MBA, graduated from medical school, and had a thriving medical practice. But, in early 2001 as he helped his father ready the company to be sold, the winds of his career shifted and Klapmeier took a new tack. By early fall, he had shelved his medical practice and had purchased Bluewater.

Then dark clouds formed on Bluewater’s horizon and a perfect storm set in. Terrorist attacks and a national economic slump plunged the industry into a three-year recession, forcing the company to cut its workforce by nearly two-thirds.

Yachts are not impulse purchases. It takes years of careful courtship before a customer actually makes a purchase. And with no network of retail dealers, Bluewater had always relied on customers coming to them.

“The problem was we had a passive sales department,” says Klapmeier. “Sales stemming from our boat shows were decreasing. During the recession, our sales staff needed to be trained to go out and find business more aggressively. I didn’t know how to motivate them to do that.”

But SBDC counselor Christian Lerch did. “Sales were slow and sales morale was down,” says Lerch, who held regular meetings with the staff. “We focused on getting results from two big boat shows, including how to interact with potential customers and following up on leads afterwards.”

Lerch’s advice was just the life ring the company needed. “His expertise with the sales staff was terribly important,” says Klapmeier. “We had been doing the same things. Chris came up with a sales plan during a time when sales were crucial.” Sales have more than doubled since the company turned to the SBDC.

To gain visibility in the marketplace, Bluewater has engaged distributors in the U.S. and abroad and has one traveling sales representative. “They have really listened to the market,” says Lerch. And they’ve responded by investing $4 million to develop the Legacy 65, a posh new cruiser with a more spacious design and wider hull.

The new boat will help secure Bluewater’s future and allow the company to continue building another important legacy: “We’re the largest employer in the county. Some people have worked here for 40 years,” says Klapmeier. “It would be a hardship on the community if we weren’t here.”